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Homework answers / question archive / Shabna is a part owner and manager of Solar Cycles Ltd

Shabna is a part owner and manager of Solar Cycles Ltd

Business

Shabna is a part owner and manager of Solar Cycles Ltd. (SCL), a solar panel installation and service company in Adelaide. SCL sources its solar panels and converters from two overseas

suppliers, one from Vietnam (Hanoi Solar Co.) and the other from China (Zhejiang Sunlight

Energy Co.). When visiting Hanoi on a recent business trip to meet her suppliers, Shabna

became aware of current news reports of protests occurring outside Hanoi Solar's solar panel

factory. Local environmental activists were protesting in relation to the dumping of toxic

materials into a local river system, which was now affecting downstream water systems,

including water for local agricultural farming purposes. The panels from Hanoi Solar are

significantly cheaper than those produced by Zhejiang Sunlight Energy, but are also comparable in quality. Zhejiang Sunlight Energy has performed consistently as one of the most environmentally and sustainable panel manufacturers globally. Shabna has been under

pressure by the other owners of SCL to keep costs down, so she is conflicted about the situation. She understands her responsibilities to the company's other shareholders but also feels like she has an ethical responsibility to her business partners and customers.

Imagine that you work for Global Compact Network Australia, and are presenting to small to

medium size businesses (SMCs) in Adelaide. Drawing on your experience and understanding of the Ten Principles of the UN Global Compact, how would you advise Shabna's about her

situation. More specifically, which Principle would you advise Shabna pay specific attention to,

when Shabna asks you how she should approach Hanoi Solar Co. about their manufacturing

processes.

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